This is something you really have to check. In most countries this would not work (you would have to sell it at today's market value), but it seems like Sweden may be much less strict about this, so it could work.
You can be tax resident in Sweden even if you spend max. 120 days there.
No, they would most likely consider you tax resident︃ if you still have access to the apartment. You can own it, but it should︄ be rented out. If you still have your life in Sweden, they will consider you︅ tax resident.
Which isn't a problem if you have access to a tax treaty that︆ would limit Sweden's right to tax you, however...
...if you only spend 60+ days in Cyprus, Cyprus will not︉ consider you tax resident as they only consider you tax resident with so little days︊ if no other country considers you tax resident. As soon as Sweden has a claim︋ against you, Cyprus will go: "Ok, he's yours then"
You have to spend 183+ days︌ in Cyprus for Cyprus to "protect" you against Sweden.
So it would be the same︍ as moving to Dubai basically.
There may be other countries with less strict rules than︎ Cyprus. Many countries are similar like Sweden where simply having an apartment there makes you️ tax resident. Or you may have to declare that it's now your center of life.
However, when it comes to the situation that both countries consider you tax resident (Sweden will always consider you tax resident, as long as you are registered as a resident), then you will have to prove to which country you have the closer ties. 183+ days in one country should always work well for this purpose, but if you spent 120 days in Sweden and 90 days in the other country and all your family and friends are in Sweden and so on, you may have a hard time winning︀ that battle.
You could become tax resident in many countries, but︃ it wouldn't help you in any way if Sweden still has a claim against you.︄
You probably don't have to sell it, but you can't have a︇ permanent home in Sweden.
You should probably be able to keep it and rent it︈ out. Then it's easy to prove that it's no longer your own home.
I don't think VAT registration should be a problem. You may have to appoint a VAT representative in the EU, which could probablt be a family member or an accountant.
But I don't have any experience with this.
Only if you hire local staff in︀ Cyprus to run everything. You have to be able to show you're not involved in︁ the business, you're only a passive investor. And you can expect that the tax authorities︂ might take a closer look at such a sudden change.
And even then, CFC rules︃ could still become a problem, though it's less likely if the company is in an︄ EU country, simply because they can't go too hard after EU companies compared to non-EU︅ companies.
You can't be involved in the business at all. If you do any kind of︈ work from Sweden, they will try to find out how much value was created by︉ you from Sweden, and that part of the profit will be taxable in Sweden (this︊ is called permanent establishment or fast driftsstalle).
This is the problem with such an online︋ business vs. something like a hotel or restaurant where you can easily show "look, I︌ have a general manager in the hotel in Cyprus, he makes 100k per year, I'm︍ just a passive investor".
In theory, you could have an office in Cyprus and only︎ work 2 days per week from Cyprus and have 5 days off, which you spend️ in Sweden. In theory, then you might be able to explain that you really only work from Cyprus and that the company should only pay taxes in Cyprus etc. - but I doubt that the tax authorities would believe that. They would probably still say you also work from Sweden.
I'm not sure if there may be some wiggle room if you can show that you have a proper office with employees in Cyprus and you only have a home office in Sweden where you sometimes reply to emails etc. (so everything is just online), but I strongly doubt it would work.
If your partner︀ was owning 100% of the company and you were just a simple employee, then maybe︁ working from Sweden might not be considered a permanent establishment (but you should still have︂ to check this with a lawyer). But then he'd be owning everything, I doubt that's︃ what you want.
But please, please, please get proper legal advice for this and only︄ take it as a baseline for what to ask a lawyer about.
You can be tax resident in Sweden even if you spend max. 120 days there.
No, they would most likely consider you tax resident︃ if you still have access to the apartment. You can own it, but it should︄ be rented out. If you still have your life in Sweden, they will consider you︅ tax resident.
Which isn't a problem if you have access to a tax treaty that︆ would limit Sweden's right to tax you, however...
...if you only spend 60+ days in Cyprus, Cyprus will not︉ consider you tax resident as they only consider you tax resident with so little days︊ if no other country considers you tax resident. As soon as Sweden has a claim︋ against you, Cyprus will go: "Ok, he's yours then"
You have to spend 183+ days︌ in Cyprus for Cyprus to "protect" you against Sweden.
So it would be the same︍ as moving to Dubai basically.
There may be other countries with less strict rules than︎ Cyprus. Many countries are similar like Sweden where simply having an apartment there makes you️ tax resident. Or you may have to declare that it's now your center of life.
However, when it comes to the situation that both countries consider you tax resident (Sweden will always consider you tax resident, as long as you are registered as a resident), then you will have to prove to which country you have the closer ties. 183+ days in one country should always work well for this purpose, but if you spent 120 days in Sweden and 90 days in the other country and all your family and friends are in Sweden and so on, you may have a hard time winning︀ that battle.
You could become tax resident in many countries, but︃ it wouldn't help you in any way if Sweden still has a claim against you.︄
You probably don't have to sell it, but you can't have a︇ permanent home in Sweden.
You should probably be able to keep it and rent it︈ out. Then it's easy to prove that it's no longer your own home.
I don't think VAT registration should be a problem. You may have to appoint a VAT representative in the EU, which could probablt be a family member or an accountant.
But I don't have any experience with this.
Only if you hire local staff in︀ Cyprus to run everything. You have to be able to show you're not involved in︁ the business, you're only a passive investor. And you can expect that the tax authorities︂ might take a closer look at such a sudden change.
And even then, CFC rules︃ could still become a problem, though it's less likely if the company is in an︄ EU country, simply because they can't go too hard after EU companies compared to non-EU︅ companies.
You can't be involved in the business at all. If you do any kind of︈ work from Sweden, they will try to find out how much value was created by︉ you from Sweden, and that part of the profit will be taxable in Sweden (this︊ is called permanent establishment or fast driftsstalle).
This is the problem with such an online︋ business vs. something like a hotel or restaurant where you can easily show "look, I︌ have a general manager in the hotel in Cyprus, he makes 100k per year, I'm︍ just a passive investor".
In theory, you could have an office in Cyprus and only︎ work 2 days per week from Cyprus and have 5 days off, which you spend️ in Sweden. In theory, then you might be able to explain that you really only work from Cyprus and that the company should only pay taxes in Cyprus etc. - but I doubt that the tax authorities would believe that. They would probably still say you also work from Sweden.
I'm not sure if there may be some wiggle room if you can show that you have a proper office with employees in Cyprus and you only have a home office in Sweden where you sometimes reply to emails etc. (so everything is just online), but I strongly doubt it would work.
If your partner︀ was owning 100% of the company and you were just a simple employee, then maybe︁ working from Sweden might not be considered a permanent establishment (but you should still have︂ to check this with a lawyer). But then he'd be owning everything, I doubt that's︃ what you want.
But please, please, please get proper legal advice for this and only︄ take it as a baseline for what to ask a lawyer about.
